HomeMy WebLinkAboutR15-Economic Development Agency
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DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUR'lT FOR COMML'lSlON/COIINClL ACTION
FROM; BARBARA J. UNDSEIH
Acting Executive Direclor
SUBJECT: HUD SECTION 108 LOAN
APPliCATION - 401H STREET
SHOPPING CENTER
DATE: November 2, 1994
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SvnllPsi.. of Previous Commi!lvon/Connci1/Committee Actionls):
On October 17, 1994,Ihe Mayor and Common Council sel Thursday, Oclober 27, 1994 aI9:00 a.m., in the City Council
Chambers as the date, time, and place 10 hold a Public Hearing 10 meet the citizen participation requirements eslablished
by the U. S. Departmenl of Housing and Urban Development (HUD) relative to the filing of a Section 108 Loan
application for the 40th Street Shopping Center.
On October 20, 1994, the Community Development Citizen Advisory Committee (CDCAC) reviewed the Section 108
application for the 40th Streel Shopping Center and recommended approval of said application 10 the Mayor and
Common Council.
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Recommended Motion(s):
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
(Mavnr and Common Councill
MOTION: That the Mayor and Common Council approve the U. S. Department of Housing and Urban Development
(HUD) Section 108 Loan Applicalion for the 40th Street Shopping Center project, and authorize the
Mayor and Executive Director to execute all necessary documents and further authorize staff 10 submit
said application 10 BUD..
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Administrator
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Contact Person(s): Stafford W ParkerlLaura J Muna-' "nda
Phone:
5081
Project Area(s): None
Ward(s):
Four (41
Supporting Data Attached: Staff Report: mID 108 Loan Application
FUNDING REQUIREMENTS: Amount: $ N/A
Source:
CDBG LOC
Budget Authority:
Reqpested
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CommiR.~ion/Coundl Notes:
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BJL:40thst.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 11/07/1994
AgendaltemNumber: IS
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DEVELOPMENT DEPARTMENT
ECONONUCDEVELOPMENTAGENCY
STAFF REPORT
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HUD SECTION 108 LOAN APPLICATION - 40TH STREET SHOPPING CENTER
BACKGROUND
Section 108 of the Housing and Community Development Act of 1974, as amended, authorizes a
program of community development loan guarantee assistance (HUD 108 Loan). Under this
program, the Housing and Urban Development (HUD) Department provides cities that receive
entitlement grants with front-end financing for large scale community and economic development
projects that cannot be fmanced from annual grants. As with all Community Development Block
Grant (CDBG) program activities, the projects financed under the Section 108 Program must
either principally benefit low-and-moderate income persons, aid in the elimination or prevention of
slums and blight, or meet other community development needs having a particular urgency.
The 40th Street Shopping Center project principally and directly benefits low-and-moderate
income persons through its provision of goods and services as well as the retention and creation
of jobs, and therefore, is an eligible project for a HUD 108 loan. Further, the project provides a
physical structure of considerable size that assists in eliminating, reducing or, certainly,
neutralizing slum and blighting conditions within the surrounding community. The 40th Street
Shopping Center is located in a low income block group no. 614 in census tract no. 51. This
activity benefits low-and-moderate income persons pursuant to Section 570.208 (a)(4) in that it
will retain ninety-one (91) full time jobs as well as sixty-five (65) part time jobs that are currently
fIlled by 100% low-and-moderate income persons. Of that total, approximately 70% of the
employees are of very low income.
In addition to the Section 108 loan, staff prepared and submitted an application for a Economic
Development Initiative (EDI) grant for the 40th Street Shopping Center. The EDI grant is to be
used in conjunction with the proceeds from a Section 108 loan. One principle goal of the
program is to stimulate use of the Section 108 program by providing EDI grant funds to reduce
the debt service associated with the Section 108 loans and to enhance the security and viability of
projects assisted with Section 108 guarantee funds. On October 11,1994, the Agency received
written notification that grant assistance under the EDI grant program in the amount of $344,000
had been approved for the City relative to the 40th Street Shopping Center. The EDI grant funds
will only be released upon the approval of the Section 108 loan application by HUD.
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BJL:40thsl.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 11/07/1994
Agenda Item Number:
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DEVELOPMENT DEP ARTMENT STAFF REPORT
40th Street Shopping Center - HUD Section 108
October 19, 1994
Page Number -2-
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The attached Section 10810an application requests $2,295,000 at eight percent (8%) interest,
amortized over twenty (20) years. The annual debt service for loan at the terms described is
$230,355.
ANALYSIS
The 40th Street Shopping Center is located in the north end portion of the City of San
Bernardino. Specifically, the shopping center is located on 40th Street between Waterman
Avenue (Highway #18) and Sierra Way. The 40th Street Shopping Center is comprised of
127,180 square feet and is situated on 14.11 acres of prime property, as it is located along a major
state highway leading to mountain resorts. Development of the Center began in 1959 with the
construction of the former Alpha Beta store, and continued eastward to the Stater Bros. grocery
store, which was built in 1969. The funding will allow for a significant revitalization to take place
which will address the following conditions that have plagued the shopping center and accelerated
its deterioration: congested access from 40th Street; poor internal traffic circulation; poor site
maintenance and cleaning; a variety of non-uniformed signage; lack of center identification; worn
and weathered facades; and increased criminal activity due to lack of security and proper lighting.
Due to conditions of the shopping center, the businesses are continuing to lose customers and in a
domino-like effect are forced to close their businesses. The Section 108 Loan, in conjunction
with the EDI Grant, will allow the City and property owners to make a substantial investment in
the shopping center and rehabilitate the center. The rehabilitation will serve as a catalyst to
increase customer traffic flow and provide for the remaining lease up of the shopping center.
The shopping center is owned by eight (8) different property owners which has complicated
previous efforts to revitalize the entire shopping center. The multiple ownership has also
restricted the individual property owner's ability to seek fmancing to complete individual
rehabilitation improvements, as fmancing institutions look collectively at the overall viability of
the shopping center. The successful revitalization of the shopping center is dependent upon a
public entity such as the City providing the necessary foundation and support. Approval of the
project will provide the City with the fmancial means to engage in a public - private partnership
which will ultimately result in the revitalization of the shopping center.
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BJL:40thst.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 11107/1994
Agenda Item Number:
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DEVELOPMENT DEP ARTMENT STAFF REPORT
40th Street Shopping Center - HUD Section 108
October 19, 1994
Page Number -3-
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The architectural team working on the design and revitalization plan of the 40th Street Shopping
Center has developed preliminary cost estimates by property owner for the project as follows:
PROPERTY FACADB MISC. CONST. CONTRACTOR CONTRACTOR CITY LANDSCAFB TOTAL
OWNBR IMPROVBMBNT IMPROVBMBNT SUPBRVISION PROFIT PROS. SIGNAGB,
AT 10% ATIO% AT 5% AT 10% UGIITING, ETC
Stater Bros. $164,412 $16,442 $16,442 $8,216 $20,614 $193,877 $420,003
Steve Salapatas $274,284 $27,429 $27,429 $13,710 $34,146 $ 97,561 $474,559
J. Zaharopoulos $ 96,300 $ 9,630 $ 9,630 $ 4,815 $12,016 $ 30,547 $162,938
Richard Filanc $ 32,722 $ 3,272 $ 3,272 $ 1,636 $ 4,048 $130,498 $175,448
Best CA Gas $ 35,200 $ 3,520 $ 3,520 $ 1,760 $ 4,428 $ 26.183 $ 74,611
Sophia Salapatas $170,303 $17,030 $17,030 $ 8,524 $21,374 $145,668 $379,929
Ben Franklin $235,524 $23,552 $23,552 $11,776 $29,467 $217,463 $541,334
American Stores I:!IA I:!IA I:!IA I:!IA I:!IA lliUlU ll'U.m
TOTAL $1,008,745 $100,875 $100,875 $50,437 $126,093 $1,039,000 $2,426,025
Although the total project cost identified in the table is $2,426,025, staff anticipates the necessary
funding requirements to be approximately $2,639,000. The additional $212,975 will be used to
address cost overages for this project, since the estimates are preliminary, Additional unforeseen
expenses may include asbestos abatement, acquisition and or demolition of structures as deemed
necessary and appropriate.
Each property owner's share of expenses identified above, result in the following percentage share
of total expenses and annual debt service,
PROPERTY TOTAL PERCENTAGE SHARE OF ANNUAL
OWNER CQ.SI OF COST DEBT SERVICE
Stater Bros. $420,003 17.3% $39,851
Steve Salapatas $474,559 19.6% $45,150
J. Zaharopoulos $162,938 6.7% $15,434
Richard Filanc $175,448 7.2% $16,586
Best CA Gas $74,611 3.0% $6,911
Sophia Salapatas $379,929 15.7% $36,166
Ben Franklin $541,334 22.3% $51,369
American Stores $197.203 8.1% $18.659
TOTAL $2,426,025 100 % $230,355
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BJL:40thst.cdc
COMMISSION MEETING AGENDA
MEETING DAlE: 11107/1994
Agenda Item Number: IS-
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DEVELOPMENT DEP ARlMENT STAFF REPORT
40th Street Shopping Center - HUD Section 108
October 19, 1994
Page Number 4-
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The Agency is using standard underwriting guidelines to include review of fmancial statements
and income tax returns to substantiate fmancial capacity, review of equity position, security in the
form of deeds of trust on subject property and any applicable guarantees and/or letters of credit.
At this juncture, staff is obtaining fInn commitments of fmancial assistance from the property
owners regarding participation in the project NotifIcation of the government award was received
October 11, 1994. Due to the narrow timefrarne for the submission of the HUD 108 application
to HUD (deadline is October 30, 1994), staff anticipates that further fInancial analysis of the
property owners' fmancial capacity will be completed after the HUD deadline. Upon the
completion of the additional fmancial analysis, staff will forward the information to HUD for
consideration.
RECOMMENDA TION
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A HUD-108 Guaranteed Loan to the City of San Bernardino of $2,295,000 at eight percent (8%)
interest over a twenty (20) year terms will make a siguillcant difference in the overall quality of
life for residents in the northend of San Bernardino. The HUD 108 Loan will make the
rehabilitation of the 40th Street Shopping Center feasible. This fInancing will provide the
opportunity for the retention of 156 existing jobs and the additional creation of 50 new jobs. The
rehabilitation of the 40th Street Shopping Center will allow for the individual property owners to
lease up the remaining available and currently vacant space and provide an enhanced quality of
life for the residents of the northend of San Bernardino.
The Community Development Citizen Advisory Committee (CDCAC) reviewed the attached
application on October 17, 19944, and unanimously recommended approval of said application to
the Mayor and Common Council for consideration at its special public hearing on the October 27,
1994.
Based on the foregoing, staff recommends adoption of the form motion.
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BJL:40tbst.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 11107/1994
Agenda Item Number: IS-
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HUD SECTION 108 GUARANTEED LOAN APPLICATION
APPLICANT/ENTITLEMENT PUBLIC ENTITY:
City of San Bemardino
Development Department
201 North "E" Street, Third Floor
San Bernardino, California 92401
PROJECT ACTIVITY/LOCATION:
40th Street Shopping Center
171 - 277 East 40th Street
San Bernardino, California 92404
LOAN REQUEST:
The City of San Bemardino is requesting a HUD Section 108 Guaranteed Loan in the amount of
$2,295,000 over a tenn of twenty (20) years. These funds will be used to assist eight (8) property
owners with a rehabilitation loan of $2,295,000 at the prevailing Section 108 interest rate
amortized fully over twenty (20) years. The use of the Economic Development Initiative (EOI)
Grant ($344,000) in conjunction with the Section 108 loan is necessary to make this project
viable. The combination of a write down and offer of a lower interest rate (not to exceed 8%)
will effectively reduce the anticipated annual debt service down to $230,355, which appears
fmancially feasible based upon a current review of the market internal rents and the fmancial
capacity of the shopping center owners.
MEETING THE COMMUNITY DEVELOPMENT OBJECTIVE:
TIle 40th Street Shopping Center is located in a low income block group (#614 in Census Tract
#51). This activity benefits low and moderate income persons pursuant to Section 570.208 (a)(4)
in that it will retain ninety-one (91) full time jobs as well as sixty-five (65) part time jobs that are
currently fllled by 100% low and moderate income persons. Of that total, approximately 70% of
the employees are of very low income.
ELIGIBLE ACTIVITIES:
Pursuant to Section 570.701 (i), this project qualifies under Section 570.203 (b) as a Special
Economic Development Activity. The City witl provide the Section 108 loan to the 40th Street
Shopping Center owners for the rehabilitation of the shopping center. The project represents a
private-public partnership which will be c3nied out jointly. TIle City has additionally contribute
to the design and engineering of the shopping center rehabilitation.
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The assistance to the for-profit businesses is based upon our determination that the assistance is
necessary and appropriate to carry out business retention and creation activity.
PROGRAM INCOME:
The project is projected to generate the following program income:
Year 1 through Year 20
$230,256 per year
Total Estimated Program Income for Twenty (20) Years: $4,605,120
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Program Income per year represents a monthly debt service of $19,188.
An assessment district will be areated consisting of the eight (8) ownership interests. Proceeds
from the assessment district will be strUctured to meet or exceed the annual debt service on this
loan.
BACKGROUND OF THE EXISTING PROJECT:
The 40th Street Shopping Center is located in the north end portion of the City of San
Bernardino. Specifically, the shopping center is located on 40th Street between Waterman
Avenue (Highway #18) and Sierra Way. The 40th Street Shopping Center is comprised of
127,180 square feet and is situated on 14.11 acres of prime property, as it is located along a major
state highway leading to mountain resorts. Development of the Center began in 1959 with the
construction of the fonner Alpha Beta store, and continued eastward to the Stater Bros. grocery
store, which was built in 1969. The funding will allow for a significant revitalization to take place
which will address the following conditions that have plagued the shopping center and accelerated
its deterioration: congested access from 40th Street; poor internal traffic circulation; poor site
maintenance and cleaning; a variety of non-unifonned signage; lack of center identification; worn
and weathered facades; and increased criminal activity due to lack of security and proper lighting.
Due to the conditions of shopping center, the businesses are continuing to lose customers and in a
domino-like effect are forced to close their businesses. The Section 108 Loan, in conjunction
with the ED! Grant will allow the City and property owners to make a substantial investment in
the shopping center and rehabilitate the center. The rehabilitation will serve as a catalyst to
increase customer traffic flow and provide for the remaining lease up of the shopping center.
Within the north end area where the shopping center is located, distress is evidenced by the
blighted conditions of the area. Approximately 70% of the parcels within the surrounding area
(an approximate three mile radius of the shopping center) are blighted as defmed by state law.
More than 60% of the parcels within the sUlTounding. area are characterized by ag.ing,
obsolescence and deterioration. Lastly, over 50% of the buildings within the sWTOundil1g area are
characterized by conditions such as deferred maintenance, weathered and wom facades, structural
deterioration, and in some instances structurall y unsound bu ildings with nonexistent maintenance
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(typically these structures are candidates for demolition).
TIle shopping center is owned by eight (8) different property owners which has complicated
previous efforts to revitalize the entire shopping center. The multiple ownership has also
restricted the individual property owner's ability to seek fmancing to complete individual
rehabilitation improvements, as financing institutions look collectively at the overall viability of
the shopping center. The successful revitalization of the shopping center is dependent upon a
public entity such as the City providing the necessary foundation and support. Approval of the
project will provide the City with the fmandal means to engage in a public - private partl!ership
which will ultimately result in the revitalization of the shopping center. -
Approval of this project ensures that no further low and moderate income jobs will be lost.
Closure of the entire shopping center would result in the lost of 91 full-time low and moderate
income jobs and 65 part-time very low income jobs. 100% percent of the jobs at the shopping
center are held by low and moderate income individuals, and of that amount approximately 70%
are held by very low income individuals. In the last two years, the shopping center has lost
approximately 24 low and moderate income jobs. It is anticipated that approximately 50 full-tinle
low and moderate income jobs will be created as a result of the shopping center renovation and
full lease up of the shopping center including the current vacant store fronts.
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The City has shown its commitment to revitalization of the 40th Street Shopping Center by
already investing approximately $57,000 in architectural and engineering design fees. To date, the
architectural team working on the project has developed various facades, common area
improvements, completed renderings of the proposed shopping center improvements, and
identified preliminary costs estimates for the shopping center improvement costs.
DESCRIPTION AND FINANCIAL ANALYSIS OF THE PROPOSED PROJECT:
The architectural team working on the design and revitalization plan of the 40th Street Shopping
Center has developed prelinlinary cost estimates by property owner for the project as follows:
PROPERTY FACADE MISe. CONST. CON'ffiACTOR CON'ffiACTOR CITY LANDSCAPE, TOTAL
OWNER IMPROVEMENT IMPROVEMENT SUPERVISION PROFIT PROI. SIGN AGE,
ATlO% AT 10% AT 5% ATlO% LIGH1lNG. ETC
Statc:rDros. $164.4\2 $16,442 $16,442 $ 8,216 $20.6\4 $193,877 $420.1103
Sk:\'e Salapaw $274.284 $27,429 $27,429 $\3,710 $34,\46 $ 97,56\ $474,559
J. Zaharopoutos $ 96,300 $ 9,630 $ 9,630 $ 4.8\5 $12,016 $ 30,547 $162,938
Richard Filanc $ 32,722 $ 3,272 $ 3,272 $ 1,636 $ 4,048 $\30,498 $175,448
Best CA Gas $ 35,200 $ 3,520 $ 3,520 $ \,760 $ 4,428 $ 26,\83 $ 74,611
Sophia Salapatas $170,303 $17,030 $17,030 $ 8.524 $21,374 $145.668 $379,929
Ben Franknn $235.524 $23,552 $23.552 $11.77(, $29.467 $~ 17 .&63 $541 ,334
American Stores WA WA lli1i lli1i lli1i ll2U!U ll2U!U
TOTAL $1,008,745 $100,875 $100,875 $50,437 $126.093 $1.039,000 $2.426,025
C Although the total project cost identified in the table. is $2.426,025, staff anticipates the necessary
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funding requirements to be approximately $2,639,000. The additional $212,975 will be used to
address cost overages for this project, since the estimates are preliminary. Additional unforeseen
expenses may include asbestos abatement, acquisition and or demolition of structures as deemed
necessary and appropriate.
Each property owner's share of expenses identified above, result in the following percentage share
of total expenses and annual debt service.
PROPERTY TOTAL PERCENTAGE SHARE OF ANNUAL
OWNER COST OF COST DEBT SERVICE~-
Stater Bros. $420,003 17.3% $39,851
Steve Salapatas $474,559 19.6% $45,150
J. Zaharopoulos $162,938 6.7% $15,434
Richard FUanc $175,448 7.2% $16,586
Best CA Gas $ 74,611 3.0% $ 6,911
Sophia Salapatas $379,929 15.7% $36,166
Ben Franklin $541,334 22.3% $51,369
American Stores $197.203 8.1% $18.659
TOTAL $2,426,025 100% $230,355
The Agency is using standard underwriting guidelines to include review of financial statements
and income tax returns to substantiate fmancial capacity, review of equity position, security in the
form of deeds of trust on subject property and any applicable guarantees and/or letters of credit.
TIle HUD Section 108 Loan Guarantee in conjunction with the ED! grant will provide the
property owners and the City with a funding source to bring about the revitalization of the 40th
Street Shopping. The project will also provide the following benefits:
1. Provide for the retention of 91 full-time low and moderate income jobs and 65 part-time
very low income jobs. 100% percent of dle jobs at dle shopping center are held by low
and moderate income individuals, and of that amount approximately 70% are held by very
low income individuals. In the last two years, the shopping center has lost approximately
2410w and moderate income jobs.
2. Provide for the creation of approximately 50 full-tinle low and moderate income jobs as a
result of the shopping center renovation.
3. Serve as a catalyst to foster growth which will ultimately result in the full lease up of the
shopping center including the current vacant store fronts.
4.
The spin-off benefits of the project as identified above include, but are not linlitecl to, the
prevention of the demise of the shopping center that will once again become a major
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stabilizing factor within the community: the increase of job opportunities and employment
for low to moderate income residents due to the heighten competitiveness and
marketability of the shopping center: and lastly, a long term catalyst to promote and
attract attendant businesses and services within the surrounding community. Further, the
increased pedestrian traffic and customers will serve to deter criminal elements, which are
a serious problem within the shopping center and by extension parts of the community.
A HUD-I08 Guaranteed Loan to the City of San Bernardino of $2,295,000 at eight percent (8%)
interest over a twenty (20) year terms will make a significant difference in the overall qu~ty of
life for residents in the northend of San Bernardino. The HUD 108 Loan will make thCoo-
rehabilitation of the 40th Street Shopping Center feasible. This fmancing will provide the
opportunity for the retention of 156 existing jobs and the additional creation of 50 new jobs. The
rehabilitation of the 40th Street Shopping Center will allow for the individual property owners to
lease up the remaining available and currently vacant space and provide an enhanced quality oflife for the residents of the northend of S an Bernardino.
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October 28,1994
From: Dwight Hill
Box 134
Big Bear City, CA 92314
(909) 584-1068
RECEIVED-.CI1'( CLE~~
'94 NOV -7 A9 :02
To: Rachel Clark
City Oerk
300 North "0" Street
Second Floor
San Bernadino, CA 92401
RE: Public of Public Hearing of Proposed Use of Section 108 Loan Guarantee Program
City of San Bernadino
Dear Ms. Clark
On November 7, 1994, a Public Hearing will be heard by the Mayor and Common Council
of the City of San Bernadino to receive citizen comments regarding the propsosed use of
Section 108 Loan Guarantee Program of the Housing and Community Development Act.
This will be Item Number 15 on the agenda.
I cannot personally attend the meeting. I respectfully reques.t that you distribute a copy of
the enclosed letter to Mayor Tom Minor, and each individual member of the Common
Council which are;
Ward One
Ward Two
Ward Three
Ward Four
Ward Five
Ward Seven
Eddie Negret
Dr. F. J. Kujrlin
Ralph Hernandez
David Oberhelman
Valerie Pope-Ludlam
Norine Miller
Thank you Ms.Oark for your anticipated coopertion.
Sincerey
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COMPLAINT OF DISCRIMINATION UNDER DFEH I
THE PROVISIONS OF THE CALIFORNIA
FAIR EMPLOYMENT AND HOUSING ACT
lkI%!@!@W;LR,U,(LJ:,WiwmnlWHll
CALIFORNIA DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING
YOUR NI'i'IE (lnd,cate Mr. or Ms.) ;ftM 7)LJ /6/-fT II / LL '109 ~~LJ;HON~~ZEg(lnclu~e Area Code)
ADDRESS /
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THE PMTlCULARS ME: L -+-
On ~\I\\I I l.Jf4 ~-m p~SQAlI P:\f was
haa e OT narm)
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by
fired
~.d off
- emoted
harassed
=== forced .to qUlt
_ denied employment
_ denied promotion
denied transfer
- denied accommodation
=== other (specify)
_ denied family leave
_ deni ed pregnancy 1 eave
_ denied equal pay
because of my:
t> .
~. itle (supervisor/manager/personne director/etc.)
_ sex Lrace/color _ physical disability (Circle one) filing;
age _ national origin/ancestry _ mental disability - protesting; participating in
- family _ marital status _ medical condition investigation (retaliation for)
=== religlon _ association _ other (specify)
Ai ~'rj :r4<210L~3tIfJ&e ?11a.Y\JI:i(~tZ
. Name of Person and Job Title
-P~ a..r--e
S(2...Q t1-71AC If ,m2 /J/J
the reason given by
was because of
[please state
what you believe
to be reason(s)]
I wish to pursue this matter in court. I hereby request that the Department of Fair Employment and Housing provide an
authorization to file a lawsuit.
I have not been coerced into making this request, nor do I make it based on fear of retaliation if I do not do so, I understand
it is the Department of Fair Employment and Housing's policy to not process or reopen a complaint once the complaint has been
closed on the basis of "Complainant Elected Court ktion". , c
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I decl.re under pen.lty of perjury th.t the foregoing is ~rue .nd correct of my own knowledge except .s to ~ers stated on my
'''~.,," .~ MH," .. u W .- _W' , MH_ " " M _. 0~/..#
Dated le- ~- ~ . /
At~;; i?JEM G(rY r/f'f)."?/1 PLAI 'S SIGNATURE . .
City . {
DATE TILED
DFEH.300.03 (07/93)
nCD^nTUCl~ nc C^TO ~MDlnYM~NT ~Nn ~NI<T~
STATE OF CALI'
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October 28,1994
To:
Mayor Tom Minor
Eddie Negrete
Dr. F. J. Kurlin
Ralph Hernandez
David Oberhelman
Valerie Pope-Ludlom
Norine Miller
From:
Dwight Hill
Box 134
Big Bear City, CA 92314
(909) 584-1068
Re:
Public of Public Hearing of Proposed Use of Section 108 Loan
Guarantee Program City of San Bemadino
Dear Mayor and Council Members
On November 7, 1994, a Public Hearing will be heard by the Mayor and Common Council
of the City of San Bemadino to receive citizen comments regarding the proposed use of
Section 108 Loan Guarantee Program of the Housing and Community Development Act.
I caunot attend the schedule meeting but would like to voice my opinion on the proposed
loan. I feel that this money will help the low income block group but I also feel that the
money geared for Stater Bros. market should be declined because that money is a taxpayers
guarantee program and Stater Bros. is discriminating against me because of my skin color
which is black. I work at the Stater Bros., Big Bear Store and have gone through shear
hell because of what local management has put me and my family through.
It is very difficult for me to comprehend that Stater Bros. will be the recipient of so much
taxpayer's money while still discriminating against blacks as they have me.
I have enclosed a copy of the complaints which I have filed under the provisions of the
California Department of Fair Employment and Housing and EEOC (Equal Employment
Opportunity Act) that deals with employment discrimination. The complaint will briefly
give you an idea of what has happened to me and is still continuing to this day.
Mr. Jack H. Brown, Chairman of the Board is very well aware of what has been going on
and it still persists. His inacitons speak very loudly. I expect an Unlawful Detainer to evict
me as I have not been able to pay my rent and I am barely making enough to eat. I have had
to get food hand outs from Eternal Light at Big Bear Lake, a local organization that helps
people with fmancial problems. I work for a market and can't afford to eat! How ironic.
Thank God for such people at Eternal Light
Stater Bros. will be getting a $420,003.00 low interest loan while they are paying me less
than all other people in my work classification, refused to pay me after I was hurt on the
job and have continued to harass and humiliate me to no end and I could go on and on.
Because of what Stater Bros. has done to me, I am still seeking psychological help to this
day.
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Page two
I have enclosed a copy of an article that appeared in the local newspaper that may help you
understand my plight a little better.
I sincerely hope you understand how I feel about Stater Bros. getting close to half a million
dollars from taxpayer money.
I hope you accept the money for the other local businesses but not for the money geared to
Stater Bros. so that they will obtain their own financing at current marlret interest rates until
they change their actual policies to those they profess on their employee manuals.
Thank you very much for taking the time to listen to me on this very important issue and
will wait to get a response from each of you folks.
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Dwight Hill
c Mr. Henry T. Cisneros
Secretary of Urban Development
Editor, Sun
Rita Robinson, Bear Valley Voice
EEOC
Dept of Fair Employment and Housing
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October 20, 1994
RECEIVED -ell'! CLEr~
To: Ms. Sylvia Felix,
C.R.T.I.U. Supervisor
EEOC
255 E. Temple Street,
Fouth Floor
Los Angeles, CA 90012
Dear Ms. Felix
I want to file a federal complaint of racial discrimination against the following individuals
and collectively;
'94 NlIV -7 A9 :02
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Stater Bros. Markets
Jack H. Brown is Chairman of the Board
Rick Jaeger is Store Manager
Michael Dougherty is Assistant Store Manager
Box 150
Colton, CA 92324
(909) 783-0515
From:
My name is
Dwight Hill
Box 134
Big Bear City, CA 92314
(909) 584-1068
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There are several reasons for this complaint which are as follows;
1. I have been underpaid hourly by amounts ranging from $.35 to $.40 per hour less than all
others doing my type of job which is that of Courtesy Clerk. This has been going on since I started
working at Stater Bros., which has been over a year. I have been underpaid since day one of my
employment with Stater Bros.
2. Mr. Rick Jaeger and Mr. Michael Doughtery attempted to get me fired on trumped up
charges. Please allow me to explain; On July 2, 1994 while working as a Courtesy Clerk, I was
bringing in shopping carts and a bigot customer physically attacked me while all the time calling me
racial epithets. This incident occurred in the store about 8 feet away from Assistant Manager, Mr.
Michael Dougherty. The store was full of customers as it was a pre Fourth of July holiday
weekend. The only reason why I was attacked was because of my color. I know this because he was
spewing racial epithets while attacking me.
Mr. Dougherty failed to intervene on my behalf nor did he call police for assistance to protect me.
It was a coworker that intervened on my behalf. This customer also threatened Mr. Dougherty
and told him he would get the same if he called the police as he was already wanted by police. I was
physically hurt by this attack and was in great pain. I told Mr. Dougherty that I was hurt and he
said it wasn't anything and since it was close to my quitting time that I should go home. Before I
left, Mr. Dougherty reprimanded me for fighting with customers!
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Dwight Hill vs. Stater Bros. continued,
Page two
The following day, I was told by Mr. Rick Jaeger that I was to have a hearing at the main office
to see if I should be fired for fighting with the customer. I tried to explain to Mr. Jaeger that I
was the victim and not the instigator and was only defending myself and I never touched the
customer only to protect myself; He told me I was lying and didn't believe me. Mr. Jaeger saw
an opportunity to fire me. Mr. Jaeger and Mr. Dougherty in concert then concocted the story
that I had started the altercation to provide them a reason to fire me. Mr. Jaeger neglected on
purpose to include information provided by my coworker that told him exactly what had happened
and was the only one that helped me. This is after my coworker (the person that came to my rescue)
told him exactly that the assailant started the whole fracas. Mr. Jaeger refused to listen to her
story and ignored it on purpose.
I told him I was still hurt and it wasn't until three days after the attack that I was authorized by Mr.
Jaeger to see a physician to treat my injury.
Immediately, he had me take a drug test to see if I was on drugs even though it was three days after
the accident. I have never used drugs and feel that Mr. Jaeger did this to humiliate and embarrass
me enough to force me to quit The rumor ran rampant imm".diately throughout the store that I was
probably on drugs and that's why I had attacked the customer!
As I understand it, accidents are required by law to be reported, this was not reported until days
later.
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I was snmmarily suspended without pay. I would have been fired if I hadn't been supported by a
community action group. The hearing for me to be fired was a sham and a pretext to get me fired
but due to local community support, I wasn't I was still reprimanded because of a sham charge.
A local couple (very prominent in the community) came forward and told Mr. Michael
Dougherty that they had witnessed the ugly incident and left their business card with him and told
him that they were willing to provide them with more information if needed. She was so close to the
altercation that she had something squirt in her eye. Mr. Jaeger and Mr. Michael Dougherty
knew of this couple and chose to ignore their information for the purpose of getting me fired.
3. When I returned to work after being off due the work related injury, Mr. Jaeger on one
occasion ordered me from my regular job of bagging groceries to go clean up human excrement that
someone had deposited outside the toilet bowl in the rest room.
This is not my job and there are many more people with less seniority than I have but I was ordered
to clean this mess even though he knew we didn't have any rubber or plastic gloves available for
this type problem. In this day and age, one never knows if that excrement had the AIDS virus or
not. Mr. Jaeger told me that if I didn't want to do it, I would be fired for insubordination. I am
terrified to this day of what I might have contacted.
This was a very humiliating experience, wrongful, unfair and unjust, was done without good
sufficient substantial cause and was not conducted in accordance with their alleged (Stater Bros.)
stated policy.
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Dwight Hill vs. Stater Bros. continued,
Page three
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I was forced to do it because I have a family to suppon and can't be without a job at this time. A
letter was sent to Mr. Jack H. Brown, Chairman of the Board by the community
organization to tell him of what has been happening to me and was asked for a response and to
remedy the situation. Mr. Jack H. Brown has not responded nor did I even get a causal sorry
from anyone.
4. Other people with less seniority have gotten promotions ahead of me.
5. I am being harassed and pressured so that I will quit my job. I believe and based that the
true reason for this treatment is because of my race, which is African-American and there have been
no other blacks working in the Big Bear store.
6. This is not the first time that Stater Bros. and Mr. Jaeger has been accused officially of
discrimination.
7 . It is ironic that Stater Bros. is again being filed for discrimination, yet they will soon get
$420,003. low interest loan from HUD to improve their store in San Bernadino!
I declare under penalty of perjury that the foregoing is true and correct of my own
knowledge except as to matter stated on my information and belief, and as to those
matters I believe it to be true.
~~JL
Dwi
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Dille
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Attachment to Complaint RECEIVED-c,m CLER~ I
Jack H. Brown is Chairman of the Board
Rick Jaeger is Store Manager '94 tIIV -7 A 9 :02
Michael Dougherty is Assistant Store Manager
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There are several reasons for this complaint which are as follows;
1. I have been underpaid hourly by amounts ranging from $.35 to $.40 per hour less than all
others doing my type of job which is that of Courtesy Clerk. This has been going on since I started
working at Stater Bros., which has been over a year. I have been underpaid since day one of my
employment with Stater Bros.
2. Mr. Rick Jaeger and Mr. Michael Doughtery attempted to get me fired on trumped up
charges. Please allow me to explain; On July 2, 1994 while working as a Courtesy Clerk, I was
bringing in shopping carts and a bigot customer physically attacked me while all the time calling me
racial epithets. This incident occurred in the store about 8 feet away from Assistant Manager, Mr.
Michael Dougherty. The store was full of customers as it was a pre Fourth of July holiday
weekend. The only reason why I was attacked was because of my color. I know this because he was
spewing racial epithets while attacking me.
Mr. Dougherty failed to intervene on my behalf nor did he call police for assistance to protect me.
It was a coworker that intervened on my behalf. This customer also threatened Mr. Dougherty
and told him he would get the same if he called the police as he was already wanted by police. I was
physically hurt by this attack and was in great pain. I told Mr. Dougherty that I was hurt and he
said it wasn't anything and since it was close to my quitting time that I should go home. Before I
left, Mr. Dougherty reprimanded me for fighting with customers!
The following day, I was told by Mr. Rick Jaeger that I was to have a hearing at the main office
to see if I should be fired for fighting with the customer. I tried to explain to Mr. Jaeger that I
was the victim and not the instigator and was only defending myself and I never touched the
customer only to protect myself. He told me I was lying and didn't believe me. Mr. Jaeger saw
an opportunity to fire me. Mr. Jaeger and Mr. Dougherty in concert then concocted the story
that I had started the altercation to provide them a reason to fire me. Mr. Jaeger neglected on
purpose to include information provided by my coworker that told him exactly what had happened
and was the only one that helped me. This is after my coworker (the person that came to my rescue)
told him exactly that the assailant started the whole fracas. Mr. Jaeger refused to listen to her
story and ignored it on purpose.
I told him I was still hurt and it wasn't until three days after the attack that I was authorized by Mr.
Jaeger to see a physician to treat my injury.
Immediately, he had me take a drug test to see if I was on drugs even though it was three days after
the accident. I have never used drugs and feel that Mr. Jaeger did this to humiliate and embarrass
me enough to force me to qnit The rumor ran rampant immediately throughout the store that I was
probably on drugs and that's why I had attacked the customer!
As I understand it, accidents are required by law to be reported, this was not reported until days
later.
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I was snmmarily suspended without pay. I would have been ftred if I hadn't been supported by a
community action group. The hearing for me to be fired was a sham and a pretext to get me fired
but due to local community support, I wasn't I was still reprimanded because of a sham charge.
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Dwight Hill vs. Stater Bros. continued
A local couple (very prominent in the community) came forward and told Mr. Michael
Dougherty that they had witnessed the ugly incident and left their business card with him and told
him that they were willing to provide them with more information if needed. She was so close to the
altercation that she had something squirt in her eye. Mr. Jaeger and Mr. Michael Dougherty
knew of this couple and chose to ignore their information for the purpose of getting me fired.
3. When I returned to work after being off due the work related injury, Mr. Jaeger on one
occasion ordered me from my regular job of bagging groceries to go clean up human excrement that
someone had deposited outside the toilet bowl in the rest room
This is not my job and there are many more people with less seniority than I have but I was ordered
to clean this mess even though he knew we didn't have any rubber or plastic gloves available for
this type problem In this day and age, one never knows if that excrement had the AIDS virus or
not. Mr. Jaeger told me that if I didn't want to do it, I would be fired for insubordination. I am
terrified to this day of what I might have contacted.
This was a very humiliating experience, wrongful, unfair and unjust, was done without good
sufficient substantial cause and was not conducted in accordance with their alleged (Stater Bros.)
stated policy.
I was forced to do it because I have a family to support and can't be without a job at this time. A
letter was sent to Mr. Jack H. Brown, Chairman of the Board by the community
organization to tell him of what has been happening to me and was asked for a response and to
remedy the situation. Mr. Jack H. Brown has not responded nor did I even get a causal sorry
from anyone.
4. Other people with less seniority have gotten promotions ahead of me.
S. I am being harassed and pressured so that I will quit my job. I believe and based that the
true reason for this treatment is because of my race, which is African-American and there have been
no other blacks working in the Big Bear store.
6. This is not the first time that Stater Bros. and Mr. Jaeger has been accused officially of
discrimination.
7 . It is ironic that Stater Bros. is again being fIled for discrimination, yet they will soon get
$420,003. low interest loan from HUD to improve their store in San Bernadino!
I declare under penalty of perjury that the foregoing is true and correct of my own
knowledge except as to matter stated on my information and belief, and as to those
matters I believe it to be true.
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